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Recent Buy: Care Capital Properties

As expected, the Fed hiked interest rates today and I was waiting for the market reaction. It wasn’t as I expected (or hoped for), but let’s start with a short introduction first.

Right now, I’m especially interested in the attractive priced healthcare REITs. I already own OHI and wouldn’t mind to add here too, but my watchlist suggested to look into Care Capital Properties (CCP) first. They operate both almost exclusively in the skilled nursing segment (CCP 91%, OHI 89%):
(Source)

It seems the political risk of possible changes of the operating environment together with the omnipresent hike rates really discount pure play skilled nursing REITs (and senior housing):
(Source)

I accept the risk and I would love to add more healthcare REITs to diversify more into this sector. As initially stated, I was hoping for a bigger drop in the sector today, but it was the other way around (as always) and so I started a position in CCP and bought 50 shares at $24.55 this added $ 114.00 to my annual income.

Doug,
thanks for stopping by! Adding to OHI is also a great idea! Now is the time to buy these beaten up healthcare REITs. Especially OHI with a history of 14 years of continuous dividend increases. The risk is definitely there, but so is the reward 🙂

Nice to read about another person buying into CCP. The position entered my portfolio via the VTR spin off but I have added to my current holding recently and will continue to watch this name along with others in the health REIT space. Nice pick up!

thanks for your visit & comment. It was also nice to read that you finally did your first add to your spin off position. And what a nice time to add! You’ve nearly picked the recent bottom. And I know you’re normally very hesitant when the yield is at this “too good to be true” level. But in the end it’s the fundamentals and I too think they are solid.

Nice buy. They have been looking pretty appealing lately since the healthcare REITs have been low. And with such a nice yield that’s even better. Should generate a decent amount of passive income to your portfolio.